EU approves support scheme for Italian floating offshore windfarms

Commission executive vice president for competition policy Margrethe Vestager said the scheme “enables Italy to support the production of renewable electricity from various technologies, including innovative ones.”

She said it will help Italy meet its emissions-reduction and electricity production targets and contribute to achieving European Green Deal objectives, while limiting possible distortions of competition.

In a statement, the EU said the support scheme for the projects, approved under EU State aid rules, contributes to the EU’s strategic objectives relating to the European Green Deal, while helping to end dependence on Russian fossil fuels and fast forward the green transition.

Italy notified the Commission of its intention to introduce a scheme to support the production of electricity from renewable energy sources. The measure, which will run until 31 December 2028, will be financed through a levy included in the electricity bills of final consumers.

The scheme will support the construction of innovative but not yet mature technologies, such as floating offshore wind, geothermal energy, new forms of solar, floating solar, tidal, wave and other marine energies, in addition to biogas and biomass. The intention is that the new power generation facilities will enter into operation in the next 31 to 60 months.

Under the scheme, the aid will take the form of a two-way contract for difference for each kWh of electricity produced and fed into the grid. It will ensure long-term price stability for the renewable energy producers by guaranteeing a minimum level of return, at the same time ensuring the beneficiaries will not be overcompensated for periods when the reference price is higher than the strike price.